DEPARTMENT OF THE NAVY
ACQUISITION PLAN
GUIDE
MARCH 2007
ASSISTANT SECRETARY OF THE NAVY
(RESEARCH, DEVELOPMENT AND ACQUISITION)
WASHINGTON, DC 20350-1000
FOREWORD
This Acquisition Plan Guide (APG) provides acquisition planning guidance and procedures for the Program Manager (PM) and other personnel assigned to participate in the acquisition planning process and the development of the Acquisition Plan (AP). The information contained in this APG is derived from the acquisition regulations, directives, and practical experience. This APG supersedes the April 1992 APG.
Acquisition planning is required by statute implemented through the Federal Acquisition Regulation (FAR). The FAR is supplemented by the Defense FAR Supplement (DFARS) and the Navy Marine Corps Acquisition Regulation Supplement (NMCARS). These documents do not repeat requirements; therefore, PMs and their staffs should refer to all the above documents, plus other applicable directives, for acquisition planning and AP development. The same advice applies to those reviewing APs. This Guide is intended to reduce the time required by PMs and their staffs, and reviewers of APs, in compiling the requirements which relate to AP development.
Appendix A is an illustrated AP that identifies the requirement and the authority for the requirement. In the event of conflict with provisions of the FAR, DFARS, or NMCARS, those documents take precedence over this Guide.
APG is a living document available at http://acquisition.navy.mil/rda/content/view/full/61. We support efforts to improve the acquisition process and encourage recommendations to enhance the usefulness of the APG and make it more beneficial to those responsible for preparing APs. Your recommendations may be made through the webmaster or submitted to:
DASN(ACQ)
1000 NAVY PENTAGON
WASHINGTON DC 20350-1000
DEPARTMENT OF THE NAVY ACQUISITION PLAN GUIDE
TABLE OF CONTENTS
Page
CHAPTER 1 INTRODUCTION
1.0 General 1-1
1.1 Acquisition Planning 1-1
1.2 Requirements for an AP 1-1
1.3 AP Approval 1-1
1.4 Contractor Support 1-2
1.5 Notice to Users 1-2
CHAPTER 2 ACQUISITION PLAN DEVELOPMENT
2.0 General 2-1
2.1 Responsibilities 2-1
2.2 Preparation 2-2
2.3 Cover Page 2-3
2.4 Identification and Numbering 2-3
2.5 Markings 2-3
2.6 Funding Data 2-3
2.7 Milestone Chart 2-3
2.8 Helpful Hints for Processing APs Expeditiously 2-3
CHAPTER 3 REVISIONS TO THE ACQUISITION PLAN
3.0 General 3-1
3.1 Method of Revision 3-1
3.2 Signatures and Approval 3-1
APPENDICES
APPENDIX A Illustrated Acquisition Plan Format and Content A-1
APPENDIX B Sample Funding Chart B-1
APPENDIX C Sample Milestone Chart C-1
APPENDIX D Sample Estimated Cost Chart D-1
APPENDIX E References E-1
APPENDIX F List of Acronyms F-1
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CHAPTER 1
INTRODUCTION
1.0 General. The Acquisition Plan (AP) documents the results of acquisition planning. The purpose of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely manner. An approved AP represents a formal agreement between the Program Manager (PM), Contracting Officer, Chief of the Contracting Office, and Program Executive Officer (PEO), Direct Reporting Program Manager (DRPM), or Head of the Contracting Activity (HCA) as to how the PM will execute the program.
1.1 Acquisition Planning
Acquisition planning is required by statute (10 USC 2305 (a)(1)(A)(ii)) as implemented through the Federal Acquisition Regulation (FAR 7.102) to promote and provide for (1) the acquisition of commercial items to the maximum extent practicable; and (2) full and open competition or, when full and open competition is not required or possible, maximum competition practicable.
Acquisition planning is the process where the efforts of all personnel responsible for the acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost. Acquisition planning includes developing the overall strategy for managing the acquisition. The AP contains the documented results of acquisition planning.
Acquisition planning should begin as soon as the need is identified, preferably well in advance of the fiscal year in which contract award is necessary.
1.2 Requirements for an AP. The requirements for preparing a written AP are at DFARS 207.103 and NMCARS 5207.103.
1.3 AP Approval. The cognizant HCA, PEO, DRPM, or designee must approve Acquisition Plans. In addition to the approval signature, APs should be signed by the cognizant PM, Contracting Officer, and the Chief of the Contracting Office.
1.4 Contractor Support. FAR 7.503(d) provides that services in support of acquisition planning generally are not considered to be an inherently governmental function. However, the use of any such services must be free of any potential conflicts of interest.
1.56 Notice To Users. Users of this Guide are encouraged to recommend improvements or changes. Recommendations, if adopted, as well as any changes in regulations or policy, will be incorporated in subsequent revisions. Recommendations should be submitted to the Deputy Assistant Secretary of the Navy for Acquisition Management, DASN(ACQ), in the office of the Assistant Secretary of the Navy (Research, Development and Acquisition).
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CHAPTER 2
ACQUISITION PLAN DEVELOPMENT
2.0 General.
This Guide summarizes FAR, DFARS, and DoD/Navy directives and instructions for use by HCAs, PEOs, DRPMs, and their supporting activities in preparing APs. The AP should address the technical, business, management, and other significant considerations that will affect the acquisition. The specific content of each plan will vary, depending on the nature, circumstances, and phase of the acquisition.
The AP should be keyed to the Department of Defense Future Years Defense Program (FYDP), applicable budget submissions, and the Acquisition Decision Memorandum (ADM), as appropriate. In accordance with FAR 7.104(a), at key dates specified in the plan or whenever significant changes occur, and no less often than annually, the planner should review the plan and, if appropriate, revise it. APs should be revised in accordance with Chapter 3.
For programs with multiple contracts, it may be beneficial to prepare one principal AP for the major procurement and prepare individual APs for the acquisition of equipment, software or services. When using multiple APs, the principal AP should:
a. Reference its subsidiary AP(s) and vice versa.
b. Identify segments of the program to be assigned to field activities for contractual action.
c. Provide integrated planning for the total system, including an acquisition milestone chart.
APs may be written on either a program or an individual contract basis. Contractor services that provide assistance to a functional organization in supporting numerous systems or programs should be the subject of an individual AP.
2.1 Responsibilities.
Pursuant to DFARS 207.103 (g), the PM, or other official responsible for the program, has overall responsibility for acquisition planning. The PM is responsible for convening acquisition planning meetings with representatives from logistics, technical, fiscal, security, contracting, legal counsel, small business, and other areas, as appropriate, to prepare initial APs or revise APs. It is incumbent upon the PM to coordinate the plan with all those who have a responsibility for the development, management, or administration of the acquisition (DFARS 207.105).
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All personnel engaged in the management of the acquisition process are essential to the comprehensive acquisition planning and preparations necessary to achieve the acquisition objectives. These personnel should be made cognizant of their responsibilities and actively participate in the development and preparation of the AP, if acquisition planning is to be successful. Planning meetings are strongly encouraged in order to coordinate planning efforts, which should significantly reduce AP development time.
The Contracting Officer supports the PM by providing input and advising the PM on contracting strategy, appropriate contract type selection, and other contractual/ business matters. The small business specialist advises on small business considerations that may potentially impact the contracting strategy.
2.2 Preparation.
Appendix A is an illustrated AP; it identifies the requirements that should be addressed in the AP. The source of the requirement (i.e., FAR or DFARS) is indicated in the left-hand margin. In some instances, the FAR/DFARS requirement is supplemented with a background “Note” or additional information that should be addressed in the AP. The narrative under the highlighted titles should not be restated in the AP. When using the recommended format, if an individual item does not apply, "not applicable" should be stated and a brief explanation provided as to why it does not apply; for example:
a. Under the "Source Selection Procedures" paragraph, if there is no competition, state, "Not applicable since this is a sole source acquisition".
b. If no Government-Furnished Property will be provided under the contract, the "Government-Furnished Property" paragraph would state "Not applicable; no government-furnished property will be provided under the contract(s)."
c. If the program is unclassified and does not involve sensitive unclassified information, state "Not applicable; this is a non-sensitive unclassified program" under the "Security Considerations" paragraph.
For services-only APs, not all requirements that are applicable to systems/hardware will apply. If a requirement does not apply, the illustrated AP in Appendix A will so state.
AP content should be relevant and concise. Common acquisition strategy paragraphs from the Acquisition Strategy document may be used for the AP or text found elsewhere in the AP, or other documents may be referenced. Approved program documents such as the Integrated Logistics Support Plan (ILSP), Test and Evaluation Master Plan (TEMP), or Navy Training Plan may be referenced by their identification number, approval or projected approval date, and approving authority. Charts and tables should be used whenever possible for the illustration of details instead of narrative text, lengthy explanations, or descriptions.
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2.3 Cover page.
An AP cover page is shown in Appendix A. All signatures should be obtained as expeditiously as possible and a cut-off date for information contained in the AP should be stated on the cover page.
2.4 Identification and Numbering.
Each contracting activity should select an identification and numbering system for APs and their revisions and consistently apply it. APs should retain their original number throughout the life of the program.
2. 5 Markings.
APs should be prepared as unclassified documents whenever possible and marked "For Official Use Only" (top and bottom of each page). Portions of the AP that contain source selection information should be marked “Source Selection Information – See FAR 2.101 & 3.104” at the top and bottom of each page. In addition, SECNAVINST 5510.36 (Subj: Department of the Navy (DON) Information Security Program (ISP) Regulation ) requires that all APs be marked as follows:
DISTRIBUTION STATEMENT B: Distribution authorized to U.S. Government agencies only. Other requests for this document must
be referred to __________(insert originating office).
2. 6 Funding Data. Appendix B provides an example of a format that may be used to depict program funding data.
2. 7 Milestone Chart. The milestone chart introduces discipline into the planning process by identifying in graphic form the points at which critical decisions must be made, and time factors that must be observed when action is necessary to produce an item or to make a competitive buy possible. The format of the milestone chart depicted in Appendix C is flexible, because the same milestones may not be present in every acquisition program.
2. 8 Helpful Hints for Processing APs Expeditiously. The following helpful hints are provided to assist in processing APs expeditiously and avoid problems that may occur and cause delay in obtaining AP approval.
a. Ensure that the Acquisition Strategy has been approved.
b. Check for consistency between the text and any charts or tables.
c. Ensure that all relevant topics are adequately addressed.
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d. Ensure the amounts in the Acquisition Plan track with the amounts in the President’s budget.
e. Verify that the TEMP, ILSP, or other reference documents are current and properly identified.
f. Ensure that the Milestone chart reflects correct milestones and reasonable timeframes for milestones.
g. Ensure that the AP is coordinated with the appropriate functional areas to confirm that information is accurate and complete.
h. Ensure that the planning for any follow-on procurement addresses whether or not in-process and final reviews of technical data, provided by the previous contractor and intended to be provided to the follow-on contractor, were made and determined to be adequate.
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CHAPTER 3
REVISIONS TO THE ACQUISITION PLAN
3.0 General. DFARS 207.103(g) designates the PM as having overall responsibility for acquisition planning. This includes complying with the requirement of FAR 7.104(a) to perform an annual review of the AP to ensure it is current. If the AP is not current, it should be revised and made current. If significant program changes occur, the AP should be revised to reflect the changes prior to proceeding with their implementation. APs should also be revised to coincide with major program events [e.g., Defense Acquisition Board (DABs), Navy/Marine Corps Program Decision Meetings (PDMs), Acquisition Review Boards (ARBs)], and the transition from one phase to another (e.g., engineering and manufacturing development to production and deployment). Examples of when an AP should be revised include:
a. The PM is unable to meet a condition attached to a conditionally approved AP.
b. The PM is unable to execute the competition plan set forth in the approved AP.
c. A major windfall or shortfall in program funding or a major stretch-out or compression in the program schedule is anticipated.
d. There is a substantial quantity increase and the program was previously approved on the basis of a sole source acquisition.
e. The source selection authority (SSA) proposes to change the source selection plan in a
manner that would reduce the number of potential competitors or adversely affect small business participation.
3.1 Method of Revision.
Depending on the extent of the changes, AP revisions may be prepared in either memorandum format, as revised pages to the initial AP, or as a completely revised AP. Regardless of the method of revision, all changes from that previously approved (e.g., change in strategy from competition to sole source, funding adjustments, quantity changes, etc.) should be specifically identified and explained.
If the AP revision is a result of significant program changes, it should be prepared in the recommended format of this guide. For other than significant program changes, a memorandum format or revised pages to the initial AP may be used. If revised pages are used, they should be dated on top and the changed text should be marked with a vertical line in the right-hand margin.
3. 2 Signatures and Approval. AP revisions based on significant program changes should be approved by the original approval authorities.
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APPENDIX A:
SAMPLE ILLUSTRATED ACQUISITION
PLAN FORMAT AND CONTENT
APPENDIX A
ACQUISITION PLAN SIGNATURE PAGE FORMAT
(Classification: If not classified, must be FOR OFFICIAL USE ONLY.)